The Inland Revenue and Excise Departments have agreed to share intelligence and conduct parallel investigations into suspected tax evasion and money laundering, seeking to strengthen enforcement and improve revenue collection.
The two departments signed a Memorandum of Understanding at the Ministry of Finance, establishing a joint mechanism to exchange information and coordinate action against offences within their respective mandates.
The agreement follows amendments to the Prevention of Money Laundering Act that took effect on August 4, 2026. According to the announcement, the amendments classify tax evasion offences under Section 189 of the Inland Revenue Act and offences under the Excise Ordinance as unlawful activities for the purposes of money laundering investigations.
The arrangement is intended to strengthen action against tax evasion, expand audit coverage, curb illicit financial flows and improve revenue collection, supporting efforts to meet government revenue targets. The initiative also forms part of Sri Lanka’s preparations for its third mutual evaluation of measures to combat money laundering, terrorist financing and proliferation financing.
The signing was held under the patronage of Deputy Treasury Secretary A.N. Hapugala, with Commissioner General of Inland Revenue Rudevi Fernando and Commissioner General of Excise M.B.N.A. Pemaratne in attendance.
Inland Revenue, Excise join forces to tackle tax evasion
